She participated in a panel discussion on universal access. She
stated that "The goal of providing high quality telecommunications services
to all consumers in the United States at affordable rates is a cherished principle
of U.S. telecommunications policy and law." She added that a "fully
functioning competitive markets deliver greater value and
services to consumers than those that are heavily regulated. Despite the noblest
of intentions, government simply cannot allocate the resources, punish and
reward providers, and encourage innovation as efficiently as markets."

While she said that she has faith in markets, she also stated
that "it is necessary for regulators to intervene when structural or competitive
barriers impede the development of competition. Therefore, as markets transition from
a monopoly to a competitive model, it is important for the regulators to craft narrowly
tailored regulations aimed at curtailing the anti-competitive behavior of incumbents."

She also said that universal service goals "are unlikely to be
advanced in the marketplace absent regulatory intervention".

She next discussed "transparency". She stated that "I believe that
transparency is best achieved through the creation and publication of clear rules.
However, for the regulatory regime to be successful, these rules must also be strictly
enforced."

She did not reference, in her prepared text, some
of the elements of transparency that are often raised by U.S. companies and
trade negotiators when complaining about lack of transparency in other nations'
regulation, such as open procedures for promulgating rules, notice and
opportunity to comment, impartial regulators, and an opportunity for judicial
review. Nor did she assert that the FCC conducts its affairs in a transparent
manner.

She did assert that "the U.S. regulatory model has only been
successful when the FCC has enforced its rules vigorously. Failure to enforce
rules sends the inappropriate signal that companies may engage in
anticompetitive behavior or other unlawful conduct with impunity."

She added that "I also find strict enforcement of narrowly
tailored rules to be more effective than broad prescriptive rules, which
prohibit whole categories of conduct, only some of which may be problematic. By
relying more on enforcement mechanisms, the FCC has been able to tailor its
intervention to particular circumstances, thereby allowing markets to operate
with minimal regulatory distortion."

Finally, she said that regulators "must ensure that consumers have access
to the information they need." She said that the FCC does this by "issuing
newsletters".

FCC Fines Infinity for Broadcasting Garbage

12/8. The Federal Communications Commission
(FCC) released a
Forfeiture Order [11 pages in PDF] in its proceeding titled "In the Matter
of Infinity Broadcasting Operations, Inc. Licensee of Station WKRK-FM Detroit,
Michigan". The FCC adopted this order on November 24, 2003, but did not release
it until December 8, 2003.

This order fines Infinity $27,500, the maximum fine for a single utterance,
for violation of 18 U.S.C. § 1464 and section 73.3999 of the FCC's rules.

FCC Chairman Michael Powell wrote in a
separate statement [PDF] that "Broadcasters should take this latest action
as yet another sign that the Commission will continue to rigorously enforce our
indecency regulations." FCC Commissioner
Michael Copps wrote in a
dissent [PDF] that "a fine of $27,500 is not even a slap on the wrist to
Infinity". FCC Commissioner
Kevin Martin, noting that the talk radio program included nine separate
calls, argued that the FCC should have fined Infinity for nine violations, for a
total fine of $247,500.

This Forfeiture Order is FCC 03-302 in File No. EB-02-IH-0109.

This is not the only proceeding against Infinity for garbage broadcasting.
See, story titled "FCC Fines Infinity for Indecent Broadcasts" in
TLJ Daily E-Mail
Alert No. 752, October 3, 2003.

12/5. The General Accounting Office (GAO)
released a letter [21
pages in PDF], dated December 4, 2003, to Secretary of Defense Donald Rumsfeld,
regarding "Space Acquisitions: Committing Prematurely to the Transformational
Satellite Program Elevates Risks for Poor Cost, Schedule, and Performance
Outcomes".

This letter states that "In a multibillion-dollar effort, the Department of
Defense (DOD) plans to build a space-based communications system that leverages
technologies never before used in space. Such a system would enable DOD to
transform how information is collected on potential U.S. adversaries and how
military forces are warned of hostile action. The backbone of this system will
be the Transformational Satellite (TSAT), which is expected to play a pivotal
role in connecting communications networks on the ground, in the air, on ships,
and in space. TSAT represents a potential leap forward in communications speed,
security, and availability. The Air Force, which heads up DOD’s space programs,
intends for TSAT to be interoperable with similar systems being acquired for the
National Aeronautics and Space Administration (NASA) and the intelligence
agencies."

It concludes that "the DOD has embarked on a new transformational
communications architecture to take advantage of emerging technologies and to
remove communications constraints from combat. The department has told the
warfighter and Congress that TSAT is a key system that is necessary to achieve
this architecture. Responding quickly, the Air Force has set an imminent
deadline of December 2003 to start the TSAT program. By starting the program so
soon, the Air Force is moving ahead without mature technologies and early design
studies -- two pillars of knowledge that would help program officials to
reliably establish cost, schedule, and performance goals. This knowledge is not
expected to be available until 2006. Our work over the years has found that when
programs have been started without the requisite knowledge, program managers and
contractors are later burdened by unreasonable expectations about cost,
schedule, and performance. Problems usually arise later that lead to cost
increases, delays in delivering needed capability to the warfighters, and
performance shortfalls."

The letter recommends that the DOD "delay the start of the TSAT acquisition
program until technologies have been demonstrated to be at an acceptable level
of maturity (at least TRL 6) and until the developing contractor has determined
through systems engineering that the design is feasible and producible."

The letter is signed by Robert Levin, Director, Acquisition and Sourcing
Management, GAO.

Apex filed a complaint in the U.S.
District Court (SDNY) against Raritan
Computer alleging infringement of its U.S. Patent Nos. 5,884,096, 5,937,176,
and 6,112,264. The District Court held that the patents were not infringed, and
dismissed the complaint. The District Court opinion is published at 187 F. Supp.
2d 141.

The Court of Appeals (FedCir) issued its
opinion on April 2, 2003, vacating and remanding on the grounds that the
District Court erred as a matter of law in the construction of the disputed
claim limitations of the patents.

This case is Raritan Computer, Inc. v. Apex, Inc., Supreme Court No.
03-326, a petition for writ of certiorari to the U.S. Court of Appeals for the
Federal Circuit, A.C. No. 02-1303

12/8. The Supreme Court
announced that it will take a recess from Monday, December 15, 2003, until
Monday, January 12, 2004. See,
Order
List [PDF], at page 10. When the Court returns on the 12th it will hear oral
argument in Nixon v. Missouri Municipal League, regarding
47 U.S.C. § 253(a)
and state statutes that prohibit political subdivisions from offering
telecommunications services. See, stories titled "Supreme Court Grants
Certiorari in Nixon v. Missouri Municipal League" in
TLJ Daily E-Mail
Alert No. 687, June 25, 2003, and "Briefs Filed With Supreme Court in Nixon
v. Missouri Municipal League" in TLJ Daily E-Mail Alert No. 776, November 11,
2003.

People and Appointments

12/8. Secretary of Homeland Security
Tom Ridge
announced several new appointments to the Department of
Homeland Security's (DHS) Private Sector Senior Advisory Committee (PVTSAC)
of the Homeland
Security Advisory Council (HSAC). The list of appointees
includes George Vradenburg and Houston Williams. Vradenburg was
previously an EVP at AOL Time Warner, and before that, at AOL. Williams is
Ch/CEO of Pacific Network Supply, a telecommunications company that he founded
in 1987. Before that, he worked for Pacific Bell and for Honeywell
Communications. Ridge also named representatives from the aircraft
manufacturing, airline, chemical, cruise ship, nuclear energy and retail
industries. See, DHS
release.

12/5. The Federal Communications Commission
(FCC) adopted an
Order [3 pages in PDF] on December 4, 2003, which it released on December 5,
2003, that amends
Part 15 (regarding radio frequency devices) and
Part 76 (regarding multichannel video and cable television services) of the
FCC's rules.

12/8. The Office of the U.S. Trade
Representative (USTR) published a
notice in the Federal Register requesting comments on the operation and
effectiveness of, and the implementation of and compliance with, the World Trade
Organization (WTO) Basic Telecommunications Agreement, other WTO agreements
affecting market opportunities for U.S. telecommunications products and
services, the telecommunications provisions of the North American Free Trade
Agreement (NAFTA), Chile FTA and Singapore FTA, and other telecommunications
trade agreements. Comments are due by January 5, 2004. Reply comments are due by
January 23, 2004. The notice further states that the USTR will conclude this
review on March 31, 2004. See, Federal Register, December 8, 2003, Vol. 68, No.
235, at Pages 68444 - 68445.

12/3. The Department of Justice (DOJ)
filed a motion
to exclude testimony of an expert witness with the
U.S. District Court (DC) in USA
v. First Data. On October 23, 2003, the DOJ, seven states, and the
District of Columbia filed a
complaint [28
pages in PDF] against First Data
Corporation and Concord EFS, Inc.,
alleging that First Data's planned acquisition of Concord would combine two of
the largest point of sale (POS) personal identification number (PIN) debit
networks, in violation of
Section 7 of the Clayton
Act. See, story titled "DOJ Sues to Stop Merger of PIN Debit Networks" in
TLJ Daily E-Mail
Alert No. 765, October 24, 2003. This case is United States of American,
et al., v. First Data Corporation and Concord EFS, Inc., D.C. No.
1:03CV02169, Judge Rosemary Collyer presiding.

12/4. A trial jury of
the U.S. District Court (CDCal)
returned guilty verdicts against William Sutcliffe on thee counts of making
interstate threats to injure or kill and five counts of transferring Social
Security Numbers (SSNs) with the intent to aid and abet another felony . The
U.S. Attorneys Office stated in a
release that
Sutcliffe was a computer technician employed by Global Crossing until he was
fired in September 2001. Sutcliffe created a web site and published in it
personal information, including SSNs, dates of birth, and home addresses, of
Global Crossing employees. He also provided hyperlinks to other web sites that
contained information on identity theft.

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information page.

12/8. The House passed the conference report on HR 2673, the Consolidated
Appropriations Act for Fiscal Year 2004, by a vote of 242-176. See,
Roll Call No.
676. The Senate has yet to pass this conference report. It may do so on
Tuesday, December 9.

12/8. The House passed
S 877,
the "Controlling the Assault of Non-Solicited Pornography and Marketing Act of
2003", also known as the "CAN-SPAM Act of 2003", by unanimous consent. This is
the same version that the Senate passed on November 25, 2004. The bill is thus
ready for President Bush's signature.

The Senate will return from recess at 10:00 AM. It
will take up HR 2673, the Consolidated Appropriations Act for Fiscal Year
2004.

Day one of a two day meeting of the Executive Office of the President's (OEP)
Office of Science and Technology Policy's (OSTP)
National Science and
Technology Council's (NSTC) Committee on Science's Subcommittee on
Research Business Models regarding the policies, procedures, and plans
relating to the business relationship between federal agencies and research
performers. See,
notice in the Federal Register, September 16, 2003, Vol. 68, No. 179, at
Pages 54225 - 54226. Location: Department of Agriculture, 1400 Independence Ave., SW.

2:00 PM EST / 11:00 AM PST.
Federal Communications Commission (FCC) Chairman
Michael Powell will speak at the
University of California, San Diego (UCSD) on the subject "Charting the
Future of the Telecom Industry". The event is at the Robinson Auditorium, UCSD,
but will also be webcast; see, www.calit2.net,
www.irps.edu, or
www.jacobsschool.ucsd.edu.
Powell will also tour Indian reservations that have high speed internet access
facilities, including Wi-Fi; however, this will not be webcast.

8:25 AM - 5:15 PM. The National Institute
of Standards and Technology's (NIST) Visiting Committee on Advanced
Technology will meet. Some of the meeting will be closed to the public. The
agenda includes a NIST update on current NIST programs; strategic plan and
program priorities; human resources, safety, and diversity; and program
implementation and evaluation. The deadline to register is December 4. Contact
Carolyn Peters at 301 975-5607
carolyn.peters@nist.gov. See,
notice in the Federal Register, November 25, 2003, Vol. 68, No. 227,
at Pages 66074 - 66075. Location: NIST, Employees Lounge, Administration
Building, Gaithersburg, MD.

12:00 NOON. The Federal Communications Bar
Association's (FCBA) Common Carrier Practice Committee
will host a brown bag lunch. The topic will be the MFJ decree, the Section 271
process, and the effectiveness of the 20-year experiment with line of business
restrictions, and pending FCC proceedings regarding structural and
non-structural safeguards. The speakers will be Bernard Wunder, James
Harralson, and Richard Metzger. RSVP to Cecelia Burnett at 202 637-8312 or
cmburnett@hhlaw.com. Location: Hogan
& Hartson LLP, 555 13th St., NW. lower level.

5:00 PM. Technology Administration (TA) Under
Secretary Phil Bond will
deliver opening remarks on IT outsourcing and manufacturing at roundtable
discussion titled "What Will Made in America Look Like in the Future".
Location: Baltimore Museum of Industry, Baltimore, MD.

8:15 - 11:30 AM. The
National Institute of
Standards and Technology's (NIST) Visiting Committee on Advanced Technology
will meet. Some of the meeting will be closed to the public. The agenda includes
a NIST update on current NIST programs; strategic plan and program priorities;
human resources, safety, and diversity; and program implementation and
evaluation. The deadline to register is December 4. Contact Carolyn Peters at
301 975-5607 carolyn.peters@nist.gov.
See,
notice in the Federal Register, November 25, 2003, Vol. 68, No. 227,
at Pages 66074 - 66075. Location: NIST, Employees Lounge, Administration
Building, Gaithersburg, MD.

12:15 - 1:45 PM. The
New America
Foundation will host a panel discussion titled "Should Last Mile Broadband
Connection to the Home be Universal? Should the Government Build the
Infrastructure to make it Happen?" The speakers will be Reed Hundt (former FCC
Chairman), Harold Furchtgott-Roth (former FCC Commissioner), and William Lehr
(MIT). See,
notice. RSVP to Jennifer Buntman at
buntman@newamerica.net or 202
986-4901. Location: 1630 Connecticut Ave., NW, 7th Floor.

Day one of a two day conference hosted by the
Department of Commerce (DOC) titled "Workshop
on Optics and Photonics in Transportation and Infrastructure".
Different notices state that at 8:30 AM or at 10:30 AM
Ben Wu (Deputy
Under Secretary of Commerce) will give opening remarks. Other scheduled
speakers include Jeffrey Shane (Under Secretary of Transportation for
Policy) and Stephen McHale (Deputy Administrator, Transportation
Security Administration). See, event web site.
For more information, contact Connie Correll at 202 482-1065. Location: DOC.

Day two of a two day meeting of the Executive Office of
the President's (OEP) Office of Science and Technology
Policy's (OSTP) National
Science and Technology Council's (NSTC) Committee on Science's Subcommittee on
Research Business Models regarding the policies, procedures, and plans
relating to the business relationship between federal agencies and research
performers. See,
notice in the Federal Register, September 16, 2003, Vol. 68, No. 179, at
Pages 54225 - 54226. Location: Department of Agriculture, 1400 Independence Ave., SW.

TIME? On December 10-12 there will be a conference hosted by many
government agencies titled "Perspectives on Employment of Persons with
Disabilities". On December 10
Ben Wu (Deputy Under
Secretary of Commerce) will speak on the Department of Commerce's Assistive
Technology Initiative. For more information, contact Connie Correll at 202
482-1065. Location:
Hyatt Regency Bethesda Hotel, Bethesda, MD.

Deadline for AT&T Wireless to respond to the
December 4
letter [PDF] of John Muleta, Chief of the Federal
Communications Commission's (FCC) Wireless Telecommunications Bureau (WTB),
regarding the extent of AT&T's compliance with the FCC's number portability rules
that went into effect on November 24, 2003.

Deadline to submit comments to the
Federal Communications Commission (FCC) in
response to its Notice of Inquiry (NOI) regarding the impact that communications
towers may have on migratory birds. See,
notice in the Federal Register, September 12, 2003, Vol. 68, No. 177, at
Pages 53696 - 53702. This is Docket No. WT 03-187, and FCC 03-205. The FCC
adopted this NOI on August 8, 2003, and released it on August 20, 2003. See
also, story titled "FCC Release NOI On Communications Towers and Migratory
Birds" in TLJ Daily E-Mail Alert No. 723, August 21, 2003.

Day one of a seven day trial in USA v. First
Data & Concord EFS, Inc., in the U.S.
District Court (DC), D.C. No. 03-2169 (RMC). See,
Scheduling and Case Management
Order [9 pages in PDF] and
story
titled "DOJ Sues to Stop Merger of PIN Debit Networks", also published in
TLJ Daily E-Mail Alert No. 765, October
24, 2003. Location: U.S. Courthouse, 333 Constitution Ave., NW.

Deadline for federal branch agency Chief
Information Officers (CIOs) to submit reports to the
Office of Management and Budget (OMB)
regarding the E-Government Act of 2002. See, November 21, 2003
memorandum from Karen Evans (Administrator for E-Government, Information
and Technology Policy at the OMB) to the CIOs.